Patrick Industries reported third-quarter sales of $975 million, essentially unchanged from a year earlier, as growth in Marine, Powersports and Housing largely offset a sharp decline in RV revenue. Reported operating income and margin fell, while adjusted operating margin held steady.
The results come as Patrick advances its planned all-stock combination with LCI Industries. Patrick’s shareholder vote is scheduled for November 18, 2026.
Key details
- Sales were nearly flat: Net sales were $975 million, compared with $976 million in the third quarter of 2025.
- Performance varied by market: Powersports revenue rose 30%, Marine increased 14% and Housing grew 4%. RV revenue declined 15%, reflecting weaker wholesale shipments across the RV industry.
- Marine growth reflected higher estimated content per unit and an increase in estimated powerboat industry shipments.
- Powersports benefited from demand for utility-focused units and stronger attachment rates for cab enclosures.
- Reported operating results weakened: Operating income was $50 million, down from $66 million a year earlier. Operating margin fell to 5.1% from 6.8%.
- Adjusted margins were steadier: Adjusted operating margin was 6.8%, unchanged from the prior-year quarter, excluding merger-related expenses, restructuring costs and other non-recurring items. Adjusted EBITDA rose 3% to $116 million, and its margin expanded 0.4 percentage point to 11.9%.
- Earnings measures were mixed: Net income was $21 million and diluted earnings per share were $0.64. Adjusted net income was $34 million, versus $35 million a year earlier, while adjusted diluted EPS increased to $1.03 from $1.01. Reported and adjusted EPS included an estimated $0.03-per-share dilutive effect from convertible notes and related warrants, compared with $0.07 a year earlier.
- Cash generation and balance-sheet figures: Operating activities provided $147 million in cash during the first nine months of 2026, compared with $199 million in the same period last year. Free cash flow was $203 million on a trailing 12-month basis. At quarter-end, available liquidity was $716 million and net leverage was 2.9 times.
- Shareholder returns: Patrick paid $15 million in regular quarterly dividends.
- LCI transaction update: Patrick and LCI signed a definitive agreement on June 30 to combine in an all-stock merger. The registration statement for the transaction became effective on October 19, and Patrick plans to hold a special shareholder meeting on November 18.
Plain-English implications
Growth across three of Patrick’s end markets kept overall sales close to the year-earlier level despite the RV downturn. The gap between reported and adjusted operating margin reflects the effect of merger-related, restructuring and other non-recurring costs; on the adjusted measure, the margin was unchanged. The all-stock LCI combination remains pending a shareholder vote.